Open Community Discussion: Strengthening Sovryn’s Treasury for Long-Term Sustainability

Bitocracy
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Right now, all protocol revenues flow directly to stakers, which has been a powerful incentive for participation. However, if we want Sovryn to thrive for the next decade (not just the next 18 months), we need to start thinking collectively about how to strengthen and sustain the Treasury.

A well-funded Treasury is critical to:

  • Keep development moving forward at full speed.

  • Ensure the Sovryn organisation and contributors remain motivated and supported.

  • Provide flexibility to seize new opportunities (partnerships, integrations, liquidity programs).

  • Build resilience against market downturns and funding dry spells.

Let’s get a conversation started on how we, as a community, can balance rewards for stakers with the long-term health of Sovryn.

Some possible ideas to kick things off:

  1. Revenue Split Model – Allocate a percentage of protocol revenues to the Treasury (e.g. 80% stakers, 20% Treasury), rather than 100% to stakers.

  2. Performance-Based Allocation – Create a dynamic system where Treasury funding increases during high-revenue periods, while stakers still benefit most during leaner times.

  3. Treasury Bonds or Notes – Issue Sovryn-backed bonds to the community with fixed returns, raising dedicated funds for development while engaging long-term supporters.

  4. Strategic Partnerships – Leverage Sovryn’s infrastructure to attract external partners who can co-fund specific initiatives in exchange for visibility, integrations, or joint ventures.

  5. Earmarked Fee Pools – Dedicate a small portion of fees from specific products (e.g., lending, margin trading) directly to the Treasury.

  6. Community Grants & Bounties – Use part of Treasury allocations to fuel grassroots innovation, incentivising builders, contributors, and marketers to expand the ecosystem.

This is just the start; your insights are needed!

  • How should Sovryn balance immediate staker rewards with the platform’s long-term resilience?

  • Which funding models do you see working best for us?

  • Are there examples from other DeFi projects we can learn from?

Please share your perspectives, proposals, and constructive critiques. Let’s keep the discussion respectful, open-minded, and solution-driven.

Also, if anyone can link to earlier threads or proposals related to Treasury funding, please share them here so newcomers can catch up on prior discussions.

1 Like
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Here my thoughts:

1. The team itself stakes SOV, a lot indeed. Therefore they receive rewards already.

2. There have been consistent financial reports up until Q3 2024. Let the team produce financial reports first for each quarter, then talk about finances.

3. Sovryn soon transitions over to Sovryn layer. This should happen soon & while functionality might be limited on day 1, it will be restored to full functionality therafter. Sovryn layer, dex and SOV the token will be dependent on the success of BOS. If BOS succeeds there will be no worries about Sovryn.

4. Yes, once we actually have a fully working Sovryn Layer and Dex AND a successfully working Bitcoin Operating System (plus bullet point nr.2), *then* we should allocate a small percentage of each fee to the treasury, exchequer or whatever section keeps Sovryn afloat.

Don’t go the second step before the first!

2 Likes
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Well this is 100% correct I have nothing to contribute on this. I hope the rest of the community will consider your post when reading this thread.